- Japanese construction companies flood value-focused quantitative screens.
- Japanese construction doesn’t necessarily transfer well in other regions.
- My avoidance of Japanese construction is simply a decision heuristic, not a suggestion that everybody should avoid Japanese construction.
Continue reading “Why I Don’t Invest In Japanese Construction”
- Capcom (TYO: 9697) is just getting started with digital distribution.
- With strong Intellectual Property (IP) like Street Fighter and Resident Evil, Capcom is well grounded.
- If you missed the Activision and/or Electronic Arts digital distribution wave, you might want to consider looking at Capcom.
Continue reading “Idea: An Alternative To Activision Or Electronic Arts – Capcom (TYO: 9697)”
- People Co (TYO: 7865) is a toy company that consistently pays out nearly 100% of its income.
- Company strategy is similar to Apple & Keyence (TYO: 6861), focusing on design and outsourcing manufacturing.
- Explosive US growth provides larger non-Japanese revenue exposure.
Continue reading “Idea: 100% Payout Ratio And Still Growing? – TYO: 7865 People Co”
- Nihon Decoluxe’s (NGO: 7950) story is profitable, but as boring as it gets.
- Revenues have only slightly increased over the past 10 years while EBIT delivered 20% CAGR.
- At 0.37x EV/EBIT and a 3.5+% dividend yield, it’s hard to go wrong with Nihon Decoluxe.
Continue reading “Quick Idea: 101% NCAV With 3.5+% Dividend Yield On Consistent Performance – Nihon Decoluxe (NGO: 7950)”
- Rinnai (TYO: 5947) leads the Japanese water heater market with a 40% market share.
- However, Rinnai’s Japan share is not the story. Growth outside of Japan has rapidly gained traction over the past few years – particularly in China and the US.
- As infrastructure in ASEAN countries develop, we can expect Rinnai’s ASEAN revenues to grow as well.
Continue reading “Quick Idea: Japan’s Leading Tankless Water Heater Company With Growth In China & USA – Rinnai (TYO: 5947)”
- Over the past decade, inventory levels have greatly increased, resulting in a drag in capital efficiency.
- Investing in Takisawa at today’s price entails betting on management to quickly improve operational efficiency while assuming higher capital spending in the automotive industry.
- Overall, Takisawa is technologically competent, but with a few operational problems. With all the pros and cons in mind, Takisawa Machine Tool is worth considering at 114 Yen per share (vs. today’s 177 yen per share).
Continue reading “6121: Takisawa Machine Tool”
- Minebea Mitsumi is currently not a buy at 1,620 yen per share (5/9/2017 closing), but would be a compelling investment as 715 yen per share.
- Key driver for Minebea Mitsumi is its Machine Component segment, particularly its industry-leading miniature ball bearing business.
- Minebea Mitsumi’s investor sentiment is likely driven by explosive revenue growth in smart phone LED backlight business (50% CAGR between 2013-2016).
- Key near-term drivers are: consistent performance in Machine Components, technological tail-end profits from smart phone LED backlights, and healthy Nintendo Switch sales.
- Minebea Mitsumi was recently formed through the merger of Minebea and Mitsumi Electric.
Continue reading “6479: Minebea Mitsumi”